Thursday, December 3, 1998
today's calendar
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B U S I N E S S | Thursday, December 3, 1998 |
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spotlight today's calendar |
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Australian
insurance companies to enter India Expressway
route identified Report
on defence, industry submitted India’s
‘policy drift’ caused slowdown |
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Vajpayee
admits fertiliser scarcity No
UTI scheme has negative NAV: Sinha Japan-Exim
okays 250 crore Tisco loan |
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India’s
food processing capacity ‘underutilised’ CHANDIGARH, Dec 2 — Despite being the largest producer of fruits and second largest of vegetables in the world, India’s position is very poor when it comes to processing. The total production of fruits and vegetables is estimated at 110 million tonnes, annually. It is not just low processing. Even wastage is pretty high. Estimates have put this at around Rs 50,000 crore a year. The wastage due to two factors — fruits and vegetables are highly perishable and the country lacks post-harvest technology and management infrastructure, including cold chain. The capacities of food processing units have increased as has investment. The number of units has also risen by about 25 per cent since 1991. Yet only 45 per cent of the processing. Industry’s installed capacity is being utilised despite the fact there is a separate ministry of food processing the industry is deemed to be a “sunrise” sector. India may be the second largest producer of primary foods in the world, producing over 600 million tonnes in a year. It may even boast of a 250-million strong middle class. Still its share in the world market is low. Its exports, says secretary, Mr P.S. Bhatnagar (food processing), has gone up from Rs 2,000 (1991) to Rs 11,000 crore (1997). The trouble, he tells TNS, is that an average Indian is apprehensive of picking up processed food can or bottle may it be sardines, chicken sausages or green vegetables. Farm fresh is what all desire and buy. Unless the Indian psyche changes (it is albeit grudgingly) processed food market will remain elusive at home”. When it comes to exports, “processable” vegetables are simply not being grown. Moreover, consumers are brand conscious. Thus quality, packaging and trade name shall all have to be netted together to promote this sector. Then there is need for processing “new” foods, says Mr Bhatnagar, who goes on to list products like “gherkins, passion fruits and sapota, amla and jammun”. All this needs improved varieties of seed and close linkage between industry, universities and the government. “Contract” or “corporatisation” type of agriculture is the need of the hour. Cleanliness or “safe” foods is also a major factor. This is all the more sensitive issue since India is a party to an agreement on sanitary measures under the WTO regime. The industry will also have to go in for ISO certification and introduce hazard analysis critical control points. These points were raised at an international conference, organised as part of the Agro-Tech by the CII here today. Mr Ramesh Vangal, president, Seagram Asia Pacific, Mr Sierk Plaat, Director, Operations, Cebeco International BV from the Netherlands, Mr F.J. Dastoor, Chairman, International Standards Certification (South Asia), Dr G. Boerio, Area Manager, Alberto Bertuzzi Spa, Italy, were among the speakers. Mr Vangal gave interesting data comparing Punjab with Holland. The two had same population level and climate. Yet Holland’s per capita income was 80 times more than that of Punjab. Holland has even less than 100 days of sun and its water is brackish. India could achieve two-thirds of US crop yields at one-third cost provided right inspiration and initiative he said. He also supported contract farming. This was one of the first
conferences held on the opening day of the Agro-Tech. A
former IAS officer and now agribusiness consultant, Mr
Gokul Patnaik, chaired the session, held at Hotel
Shivalikview. |
Of grandeur
& beauties CHANDIGARH, Dec 2 — The much-publicised agri-business show, Agro Tech ‘98, opened this morning with Mr Parkash Singh Badal doing the ribbon-cutting. Although the CII had expected a Central Minister to perform the ceremony, Badal was obviously a better choice — the nuisance of security notwithstanding. The Jat farmer in power loves tractors — and now businessmen too! * * * An unexpected visitor to Agro Tech was actor Vinod Khanna, though no longer a heart-throb but was still a delight for ladies around. He was accompanied by his pretty wife, Kavita Khanna. That a lot of effort has gone into putting up the massive show is obvious. And the credit for that goes to the CII’s battalion of beauties. Businessmen in India may not pay the required attention to the quality of their products, but they know how to sell them and who can sell them. So good-looking salesgirls have a bright future. Salesboys, look for another career. * * * The VIP lounge, the CII camp office and the theme pavilion of Uttar Pradesh are among the many attractions designed by Delhi-based Pavilions & Interiors. “It is like putting up a film set”, said Mr Biju, the site Director. About 350 exhibitors — some foreigners, but mostly Indian — are displaying their wares in six pavilions. The product range is not confined to tractors, poultry or dairy items but covers technologies relating to fruit and vegetable processing, packaging, cold chain, water management and biotechnology too. * * * An ordinary farmer — whether from Punjab, Haryana or Himachal Pradesh — will be too overwhelmed by Agro-Tech’s grandeur to ask English-speaking salesgirls what these technologies are all about or how much they cost, leave alone buy them. Still a visit to such technology shows is an eye-opener. Guess, what is Allahabad Bank doing in the poultry section? * * * The CII also brings out a publication called “Agro Tech news” which tells, among other things, about “ today’s events”. It carries a few jokes too. Here is a sample : A man went to apply for a job. The employer went through his resume and a huge pile of certificates and said: “We have an opening for people like you”. “Oh great!” said the applicant. “What is it?” “It’s called the
door”. |
Media left
to fend for itself CHANDIGARH, Dec 2 — The media hype on Agro Tech is understandable. After all, it is a mega event of the year organised by bigwigs of the industry. It is, therefore, by the big, of the big and for the big. A virtual who’s who of the Indian politico-administrative system has been invited. On each occasion — this is the third Agro-Tech in Chandigarh — the CII collaborates with one or the other country. It was Israel first and Australia the second time. Thanks to the “sanctions” courtsey Pokhran-II, the co-hosts are Punjab and Haryana with Andhra Pradesh as partner state this time. Despite the publicity and reams of paper printed for the occasion and setting up of a media “lounge” at the exhibition ground, the first day itself proved to be quite a hassel for mediapersons. For instance at the fruit and vegetable processing “international” conference at Hotel Shivalikview, there were no arrangements for seating Press persons. Enquiries with the CII “staff” only added to the confusion. Conference documents were for the “delegates” alone. The media was asked to fend for itself and made to go to the media lounge with instructions to contact so and so. The so and so was unavailable, enquiries showed. At least two more shuttle trips between the hotel and the media lounge, including avoidable arguments with security people at one could lay hands on the documents. Press badges issued broke soon after these were pinned. While some mediapersons carried these in pockets or in hand, a few others even lost their Press badges. Total confusion reigned. One wondered of what use the walkie-talkie sets, the mobiles, the pagers for etc were if one was made to get the impression of not being wanted. Polite talk or smile alone by the “staff” does not satiate the hunger for news or fulfil the need for background material. With so many subscribes
swarming all over, no one really knew whom to turn to and
where to look for relevent material, men and matters. The
only concern of the CII “staffers” and
“officials” was for the VIPs or the foreign
delegates. The only time CII “staffers” seemed
enthusiastic about pressmen was when particular big ones
were required to be “interviewed”. Will media
helpline be more responsive and cooperating in the next
two days or so? |
Escorts Ltd
unveils paddy transplanter CHANDIGARH, Dec 2 —Escorts Ltd. today unveiled the country’s first paddy transplanter — Escorts-Yanmar Paddy transplanter — and Powertrac series of tractors at Agro Tech ‘98. Mr Rajan Nanda, Chairman,
Escorts Ltd. said: “We are confident that this will
enable Escorts Agri to achieve a marketshare of 22 per
cent by year 2000.” Elaborating on the
company’s plans, Mr Nanda said, “Escorts has
acquired 49 per cent equity in Long Manufacturing
Company, USA. Based in North Carolina the company has
started distributing Escorts tractors. We plan to buy
distribution companies in Poland and Turkey. We also
expect to export 10,000 to 15,000 tractors to Europe and
the USA”. |
Greaves
launches 50 HP tractor CHANDIGARH, Dec 2 — Greaves Limited, the Rs 700 crore Thapar group company, launched a 50 HP tractor, “Same Greaves 503”, here today. It will be manufactured in technical collaboration with the Same group of Italy at the Greaves plant at Ranipet in Tamil Nadu. The tractor, priced at Rs 2.80 lakh, was unveiled by Mr L M Thapar, Chairman of the group. Addressing a press conference, Mr Thapar said the demand for 50 or more HP tractor was growing as was evident from tractors by competitors at Agro-Tech. Dr Gerald Hampel, CEO of
Same, said the tractor has a power-packed engine, oil
immersed sealed brakes, the first-ever cooling system
with no loss tank, a hydraulic system, an independent PTO
(power take-off) and suspended pedals. |
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NEW DELHI, Dec 2 (PTI) — The Parliamentary Standing Committee on communications today opposed the steep hike in basic telephone tariffs proposed by the Telecom Regulatory Authority (Trai) and said there was no reason to restructure tariff on the lines of industrialised nations. Judged in the light of the
strong public reaction to Trai proposals and the ground
realities, the committee felt that it may not be possible
to make a steep increase in rentals acceptable to
consumers, Committee Chairman Somnath Chatterjee told
reporters here. |
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NEW DELHI, Dec 2 (PTI) — The government proposes to mop up Rs 1,25,000 crore for the construction of expressways linking the major metropolitan cities with 11 major ports in the country, a major portion of the funds coming from the private sector. The government has identified 13,500 km stretch of route for expressways which is to be given to the private sector for construction under build, operate and transfer (BOT) scheme, Minister for Surface Transport M. Thambi Durai told newspersons here today. Mr Durai said the national expressway authority of India which will be modelled along the lines of National Highways Authority of India (NHAI) will oversee the maintenance and proper functioning of the expressways. He said the government had offered numerous concessions including tax rebate to those proposing to invest in the construction of highways and expressways in the country and has invited foreign investors including Non-Resident Indians. Mr Durai said the government alone was not in a position to undertake the construction of highways and expressways and it was essential to have private sector investment in this area. Mr Durai said people were prepared to pay more for getting good roads as this would also help in reducing the wear and tear of vehicles. As part of the government effort to mobilise funds, it was proposed to the Finance Ministry that a levy be imposed on automobile manufacturers which would be used for construction and maintenance of roads. The minister said as part of government efforts to attract private investment in the road sector where the cost per km construction is Rs 9 crore, an international congress on express highways development in India will be held here for three days from December 14. The conference will be inaugurated by Prime Minister Atal Behari Vajpayee. He said about 1000 delegates from abroad have sent their consent to participate in the conference and this has been very encouraging. Asked about the toll to be
levied by private parties constructing the highways, he
said people would pay if they get better facilities. |
Report on
defence, industry submitted NEW DELHI, Dec 2 — A report on Defence-industry partnership, prepared by the Joint Task Force on Information Technology comprising representatives of the Ministry of Defence and CII was submitted to the Defence Minister, Mr George Fernandes yesterday. The report says that the spread and impact of technological advances in IT present the Indian Armed Forces with the challenge to incorporate newer systems. These challenges can be addressed by setting into motion the process of an Defence IT Industry partnership and fielding customised commercial-off-the -shelf (COTs) products. Presenting the report,Deputy Chief of Army Staff and Chairman of the Task Force, Lt Gen S.S. Mehta said that the vision of the task force is to harness full potential of information technology in building a strong infrastructure for the defence services. Speaking on the occasion,
Secretary , Defence Production and Supplies, Mr Prabir
Sengupta emphasised the need for the Service Headquarters
to come out with the road map on implementation of
various IT projects. |
India’s ‘policy drift’ caused slowdown WASHINGTON, Dec 2 (UNI) — The World Bank has held India’s “policy drift’’ and weak industrial performance responsible for the current slowdown in the country’s economy, making it difficult to sustain its higher growth path. In its new report, “The global economic prospects,’’ which was released here today, the international lending agency says the Indian economy slowed down to 5 per cent in fiscal 1997-98, following three years of rapid advances averaging 7.5 per cent. While a decline in agricultural output was a contributing factor, non-agricultural GDP growth had begun to slowdown in 1996-97. To reduce poverty and raise standards of living, the economies of South Asia and their 1.2 billion persons, need to accelerate growth rates to 7 per cent and keep them there, it adds. It says the growth picked up significantly between 1992-96 following trade and investment liberalisation and significant depreciation of real exchange rates, especially in India. Favourable global economic conditions helped out, giving exports and foreign direct investment (FDI) inflows a boost. But, new challenges are clouding the region’s prospects, from the effects of economic sanctions to wavering attention to reform and worrisome dangers that the trade fall-out of the East Asian crisis will affect South Asia. Depressed export markets in East Asia and Japan are a blow since these markets had come to account for a significant share and growth of South Asia’s exports. Moreover competition from East Asia in other markets will slow the growth of exports, especially from India and Pakistan. It says the 1998-99 Budget contains no “concrete proposals’’ for substantial further reductions in the public sector deficit and proposes to increase revenues through higher excise collections and import tariffs, potentially a step in the wrong direction. “If growth targets of over 6 per cent do not materialise, the total public sector deficit could well persist at more than 9 per cent of the GDP, representing one of the biggest challenges for the Indian economy,’’ it adds. The World Bank document says industrial output has fallen from 12.5 per cent in 1995-96 to 6.4 per cent in 1996-97 and then declined further to 5.7 per cent in 1997-98, contributing to the slowdown was the persistence of large public sector deficits, a decline in export growth since 1995-96 and cutbacks in investment because of uncertainty about reforms. It was the slight fall in the public sector deficit to 9.1 per cent of the GDP due to a cut in subsidies on petroleum products that brought domestic oil prices closer to world prices. It says domestic financial
weaknesses remain a concern and will need to be addressed
if the financial system is to be a source of strength
rather than a drag on longer-term growth — as shown
recently by a run on deposits with the state-owned
investment corporation, Unit Trust of India, domestic
stock markets, already depressed, slumped further in
response. |
Australian insurance companies to enter India NEW DELHI, Dec 2 (PTI) — Two Australian insurance majors — CMG Asia Pty Ltd and GIO — have chalked out concrete plans to enter the life and general insurance segments in India. While CMG Asia, which is the second largest insurance group, is scouting actively for an Indian partner, GIO has already tied up with South-based conglomerate, Sanmar Group, that has diverse interests, including chemicals, engineering, cements, shipping and textiles. Sanmar group Chairman N Shankar visited Sydney recently to discuss the new company’s structure after the government indicated that the insurance Bill allowing upto 40 per cent foreign equity in the sector would be passed in the current session of Parliament. “The rules of the game have not been made clear yet but we have tentatively decided to pick up atleast 26 per cent equity initially”, Sanmar group Vice Chairman Narayanan Kumar told PTI. CMG Asia General Manager (Business development) Patrick Amos, whose company manages funds valued at over 45 billion $ said the company was looking for a partner with considerable geographic spread and expertise in distribution. “The penetration rate in life business in India is very low and we see a big opportunity here despite the monopoly status of state-owned Life Insurance Corporation”, he said. At present, some uncertainty clouds the operations of GIO in Australia as the largest insurance company down under, AMP, had stepped up efforts to acquire the company, Kumar said. But he clarified that it
would not affect the memorandum of understanding between
Sanmar group and GIO or delay its effort to start an
insurance company as soon as the Bill was passed. |
NEW DELHI (PTI): Nationalised banks and financial institutions are awaiting guidelines from the RBI to work out a package to help the recession-hit textile sector, senior bank officials have said. “The RBI has to give the guidelines on whether there can be re-scheduling of term loans by mills or additional credit has to be given to the units”, a bank official said. The textile industry, led by the Indian Cotton Mills Federation, has been seeking, besides re-scheduling of term loans and additional credit for cotton purchases, export credit at low interest and soft loans for voluntary retirement scheme (VRS) for workers. While the Textile Ministry arranged for a tripartite meeting between textile sector, Finance Ministry officials and financial institutions on October 6, Minister of State for Finance K M R Janarthanan last week held a meeting with the textile sector and banks to find a way to help the cash-starved mills. The meeting, held on November 24, resolved that mills facing financial crisis would be helped to make a turnaround with the Finance Ministry issuing a directive to the banks to be flexible in capital norms and money margin. ‘Smart’ card MUMBAI (PTI): Indian Institute of Technology (IIT) here would launch a “smart” card developed by it on pilot basis on December 3, for use in secure day-to-day financial transactions. “The SMARs (smart rupees) in the pilot phase would be given to about 5,000 residents of IIT campus and over 100 terminals to merchant establishments in and around the campus,” IIT said in a release. The Smart card is a plastic card embedded with a chip. The RBI, Canara Bank, Citi Bank, SBI, Gemplus, Schlumberger, Aplab, Ascom, GMS Computers, Verifone, Idrbt and IIT are the project partners for the pilot phase. Vyasa Bank VIJAYAWADA (PTI): The Karur Vyasa Bank (KVB), one of the top five banks in the parivate sector, has set its deposit target at Rs 2500 crore and advances to the tune of Rs 1400 crore during 1998-99, according to the bank’s Chairman A D Navaneethan. Mr Navaneethan said that among the private sector banks, the non-performance asset (NPA) of the bank was at lowest — less than 2 per cent. The bank has been identifying itself with national priorities and aspirations, continuous focus was being given to the flow of credit to priority sector which stood at 42.58 per cent of the net credit as against the norm of 40 per cent, he added. Rs 1,000 notes NEW DELHI (PTI): The government on Wednesday introduced a Bill in Lok Sabha to enable the RBI to issue notes of Rs 1,000 denomination immediately. The statement of objects and reasons of the high denomination bank notes (demonetisation) Amendment Bill, 1998, tabled by Minister of State for Finance K M R Janarthanan, said this was being done to eliminate shortage of currency notes and ease pressure on other denominations. The financial memorandum appended to the Bill said these notes would be printed in the existing note-printing presses with the available facility and the expenditure involved would be only to the extent of normal production cost, which would be about Rs 1.25 per piece. Bank Muscat NEW DELHI (UNI) — Bank Muscat International (BMI), a leading bank in Oman, today commenced its business in India from Bangalore with $ 10 million capital (about Rs 430 crore). The Bangalore branch will provide both retail and corporate banking services including 24-hour ATM, a company release said. “The bank intends to consolidate its position in Bangalore before expanding to other Indian cities, subject to approvals from the RBI’’, BMI Chief Executive Officer Abdulrazak Ali Issa said. Corp Bank NEW DELHI (UNI): Aiming to step-up its assistance to the exporter community, Corporation Bank is opening its second specialised overseas branch here to exclusively handle export and import business of its customers. The bank, a pioneering
bank in collection and payment services (CAPS), is a
leading player in cash management services market in New
Delhi. The bank has a specialised CAPS branch at New
Delhi rendering collection and payment services to an
array of corporates of the city. |
Vajpayee admits fertiliser scarcity NEW DELHI, Dec 2 (PTI) — Prime Minister Atal Behari Vajpayee today admitted there was a shortage of fertilizer in some parts of the country, but assured the Lok Sabha that “if need be” the government would import the material to meet the needs of the farmers. Intervening during question hour when Opposition members said there was shortage of fertilizer and wanted to know what steps the government was taking to tackle the problem, Vajpayee said there was a shortage “in some areas and farmers are queuing up for it.” “Effective steps are being taken to tackle it (the shortage) and if there is need, we would import fertilizers for meeting the requirements of farmers as it was needed for the sowing season,” he said. On the availability of di-ammonium phosphate (DAP), Vajpayee said it was available in the open market and 55,000 tonnes imported from Jordan were being lifted today which would be supplied to farmers immediately after arrival. He said 2.5 lakh tonnes of
DAP were lying in ports and these would be given to
farmers. |
No UTI scheme has negative NAV: Sinha NEW DELHI, Dec 2 (PTI) — The government today maintained that none of the Unit Trust of India (UTI) schemes had a negative net asset value (NAV) as Rajya Sabha members demanded more transparency in the working of country’s largest mutual fund. Responding to a calling attention motion by the BJP member Narendra Mohan on erosion in UTI’s NAV, Finance Minister Yashwant Sinha, however, said certain schemes of UTI like US-64, unit linked insurance plan and Charitable Religious Trust Scheme (CRTS) were not NAV driven. Sinha said the 20 per cent dividend amounting to Rs 3,125 crore announced in June under US-64 scheme was out of the net income of Rs 3,222 crore earned during the year. Stating that NAV of schemes, which invest in equity, bonds and other money market instruments, fluctuate with the market value of underlying assets, Sinha said of the 21 equity funds managed by UTI, 18 had outperformed BSE sensex. The minister admitted that the latest balance sheet of US-64 showed a depreciation in the value of investment to the tune of Rs 3,566 crore and said it was on account of adverse movement in stock prices. Moving the motion, Mohan
wondered why the non-performing assets (NPA) of UTI were
not being made public and said the NAV of US-64, reports
about which triggered redemption pressure on UTI, should
be made public to stem erosion of faith in the mutual
fund. |
Japan-Exim okays 250 crore Tisco loan NEW DELHI, Dec 2 (PTI) — The Export and Import Bank of Japan (J-Exim) has approved a Rs 250 crore loan for Tata Iron and Steel Company’s (Tisco) cold roll milling project at Jamshedpur. J-Exim has approved the loan and is likely to sign the loan agreement before the end of this year, highly placed bank officials told PTI. The 10-year period loan would be financed under the “export-credit scheme” of the bank, which means the loan has been approved without any domestic bank guarantee, the officials said. The loan to Tisco would be given in the Japanese currency yen (eight billion yen), sources said. Japanese multinationals
Hitachi and Nissho Iwai would be the equipment suppliers
for the project, they said adding the rate of interest
for the loan would be based on Oecd guidelines. |
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| Tetra Fino CHANDIGARH, Dec 2 (TNS) — Tetra Pak India today introduced Tetra Fino packaging system which uses aseptic technology to retain product freshness and quality in Punjab. Announcing the company’s plans for the Punjab market, Mr Surendran Menon, Vice-President, Marketing, Tetra Pak India, said, “Punjab the country’s largest milk producer, is an important market for Tetra Pak. Our ‘milk initiative’ is to provide processing and packaging support to producers. Tetra Fino packages are pillow-shaped pouches. Milk in these packs remains fresh for 45 days and can be consumed directly without boiling. Honda
Siel Cess Forex rates U.S. $ Rs 42.55/56 The RBI reference rate was Rs 42.57. Gold recovers Warehousing |
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